Sunshine Oil (02012) has announced that on September 6, 2026 (Hong Kong time), the company entered into debt-to-equity conversion agreements with certain creditors. Under these agreements, the company will allot and issue relevant shares to each creditor to settle the debts, serving as full and final settlement of each creditor's claims.

The issuance price of HK$0.171 per share represents a discount of approximately 5% compared to the closing price of HK$0.180 per share as quoted on the Stock Exchange of Hong Kong on September 4, 2026 (Hong Kong time). Assuming no further issuance of new shares or share buybacks, the relevant shares will account for approximately 12.16% of the company's expanded total issued share capital immediately following completion of the issuance.

As of the date of the debt-to-equity conversion agreements, the total payable debts owed by the company to creditors amounted to HK$16.8425 million. These payable debts will be settled through the issuance of 98.4943 million relevant shares. The company's directors believe that settling the payable debts by issuing shares will not result in substantial cash outflow while simultaneously reducing the company's liabilities.

Therefore, the directors consider the terms of the debt-to-equity conversion agreements to be fair and reasonable, and that this issuance is in the overall interests of the company and its shareholders.